RISKS AND CHALLENGES OF THE PRODUCTIVE CAPACITY OF THE REGIONAL ECONOMY: SPATIAL DIMENSION

Abstract

The authors develop the concept of “productive capacity of the regional economy”, which emphasizes the multidimensionality of the phenomenon, its dependence on various factors and is manifested in many areas of the economy. Productive capacity is considered as the ability of a region or economic system to use its resources effectively to achieve maximum productivity and ensure the increase in its production potential.

Among many factors, spatial ones play a special role, since the processes occurring in the regions have a spatial expression. Taking these factors into account when assessing the productive capacity of a region contributes to a deeper understanding of the mechanisms of using space as a tool for increasing economic efficiency. Productive capacity largely depends on the concentration of economic activity, agglomeration effects, resource provision, favorable location, the level of infrastructure development and the quality of management. The combination of these factors creates the prerequisites for the effective functioning of the regional economy, the development of high-value-added production, infrastructure expansion and the attraction of commercial investments. At the same time, there are factors that can significantly limit or reduce the productive capacity of the region's economy, such as administrative fragmentation, corruption, resource constraints and disruptions in economic space.

The reduction in productive capacity is a consequence of a number of adverse conditions and situations, namely: changes in regional settlement systems, logistical barriers, a deepening institutional disruption in the system of strategic documentation designed for territorial development, the destruction of critical infrastructure and mining of the territory, deindustrialization and a decrease in the concentration of regional economic potential, disproportionality and spatial unevenness of investments in territorial development.

The main reserves for increasing productive capacity are concentrated in increasing capitalization and finding mechanisms for the most effective use of territories, intensifying the differentiation of the spatial structure of the state, taking into account specific conditions and nature of settlement and economic activity, integrated development approaches, increasing financial capacity, including through the development of inter-territorial cooperation mechanisms, using the capabilities of modern technologies, etc.